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Apartments are the most popular property type in Chennai. The main reason behind this is that owners find apartments easier to maintain due to the support of the association. In addition, apartments give a feeling of security to its inhabitants.

What is the current scenario of re-development in Chennai?

Chennai is gradually moving towards re-development. The corporation is extending its limits around Chennai and is planning to give facilities in these extended limits.

Which locations are being redeveloped in Chennai?

Localities such as East Coast Road (ECR), Old Mahabalipuram Road (OMR), Grand Southern Trunk (GST) Road, Oragadam and Sriperumbudur are a few localities which are witnessing rapid redevelopment.

Which are the future growth corridors of the city and what factors affect their growth?

GST Road and OMR are the fastest growing residential sectors in Chennai. There has been rapid development of IT/ITeS industry in the areas around GST, OMR and ECR. This has facilitated growth of the residential sector in these areas. Oragadam and Sriperumpudur are the major industrial zones of the city. Since there is substantial industrial growth in Chennai, residential development is also taking place in these locations.

Can you define affordability and luxury in Chennai?

Affordability and luxury vary as per the location in the city. For instance, in prime locations of South and Central Chennai, lower end properties are available within Rs 15,000-20,000 per sq ft. Luxury depends on the facilities offered in the projects. It usually starts at Rs 20,000 per sq ft.

Similarly, in developing locations like OMR, GST Road, areas near Maraimalar Nagar, Chengalpattu, Sriperumpudur and Oragadam, lower end properties are available in values ranging between Rs 2,800 to Rs 4,800 per sq ft and luxury apartments start at Rs 6,000 per sq ft and go up to Rs 10, 000 per sq ft.

The ORR was part of the recommendations of the First Master Plan for Chennai Metropolitan Area, to ease traffic congestion in the city by connecting the NH in the Chennai Metropolitan Area.

It is believed that the DDP proposed by the CMDA would focus on the grid of roads, aiming at good connectivity to the outer ring road, inter linkages and future requirements of physical and social infrastructure.

Interestingly, the proposal also comes in the wake of the development of a passenger-cum-freight railway line, linking Ennore to Vandalur on the ORR stretch, which planners feel will generate interest among the real estate developers. Besides, the State Government is also planning to build an inter-city satellite bus terminal in Vandalur for South-bound buses.

The CMDA is likely to drop the plan to develop a detailed development plan for Ambattur, which it feels has already developed. Ambattur was among the five peri-urban areas, for which the CMDA planned to develop DDPs more than four years after the Second Master Plan came into being.

DDPs are prepared under Section 27 of the Tamil Nadu Town and Country Planning Act and the maps prepared show the ideal use of each piece of land in the area and guide infrastructure development by various department and agencies.

These three stretches are hot topics in Chennai’s realty circles. They are spoken of as roads of the future. It is easy to see why. There is a flurry of business activity and infrastructural development along these roads and in their vicinities; moreover, they directly feed into big corridors of development.

All three connect to GST Road; in addition, Kelambakkam-Vandalur Road leads into Old Mahabalipuram Road and Sriperum budur-Singaperumal Koil Road into the Bangalore Highway.

“The GST Road is like a spinal column and these feeder roads, like vertebrae. What Mount Road does for Nungambakkam High Road, Cathedral Road, Venkatanarayana Road and a few others, GST Road does for these three roads. If you look at it, GST Road is but an extension of Mount Road,” says R.V. Shekar of Lancor Holdings.

Urban planning and the lack of space for expansion in the city’s north have fuelled the development of these areas. As they are linked to arterial roads, they figure prominently in the plans of town planners. In keeping with the larger goal of decongesting the city, these three roads are being widened.

According to official sources from the State Highways, four-laning of these three roads is underway (a 12-km stretch on the Sriperumbudur-Singaperumal Koil road is in fact getting a six-lane). At the Oragadam junction where the Sriperumbudur-Singaperumal Koil road and the Vandalur-Walajahbad road meet, a grade separator is coming up.

Close to OMR

Above all, the speedy growth of OMR as an IT hub has generated interest in the Kelambakkam-Vandalur stretch.

The road has also benefited from the development of social infrastructure facilities such as colleges, schools and hospitals. Access to similar facilities in nearby OMR and GST road is another attractive factor. Industry watchers feel that the completion of the Outer Ring Road will provide a further developmental fillip.

As for the other two roads, industrial activity in Sriperumbudur and Oragadam is the primary factor for the real estate boom. Renault-Nissan has installed a huge plant in Oragadam with an annual target of 4 lakh cars; Daimler India Commercial Vehicles (DICV) has built a test track at a 400-acre site in Oragadam; Sriperumbudur and its vicinity, which enjoyed the first wave of development that swept through the region, has Saint-Gobain, Hyundai, Nokia, Samsung, Flextronics (provider of electronics manufacturing services), Foxconn (computer and electronics manufacturer) and Dell.

Naturally, rapid development has pushed land prices in all the three roads.

“While land near the Sriperumbudur end of the Sriperumbudur-Singaperumal Koil Road could be bought at Rs. 300 to Rs. 350 a sq.ft. three years ago, now you can’t hope to get anything for less than Rs. 600 to Rs. 700 a sq.ft,” says Abinesh Yuvaraj of Baashyaam Constructions. Likewise, land on the Padappai, Oragadam and Walajahbad sections is available at similar prices and attracts investment buyers.

Tracts of land on either side of the Kelambakkam-Vandalur Road cost relatively more given their proximity to the OMR. At Kandigai, one major project offers developed plots at Rs. 26 lakh for a 2,400 sq.ft piece.

For many years, realty talk has centred around the OMR. Those in the business now believe that the buzz in the future will be around these three roads.

What builders say

Kelambakkam-Vandalur Road

Fifteen years ago, an ant would not go down the Kelambakkam-Vandalur road. It is now buzzing with activity.

R.V. Shekar, Lancor Holdings

A majority of those who buy from us are end users.

J. Ravikanth, Unitech Group

It is a road that will come to support a mammoth group of people who work on OMR and GST road.

Devadoss Sundaram, CeeDeeYes

Increasing connectivity by way of minor roads between the Sholinganallur-Medavakkam stretch and the Kelambakkam-Vandalur stretch encourage people to look for housing in this area.

Sandeep Mehta, Jain Housing.

Sriperumbudur-Singaperumal Koil Road & Vandalur-Walajahbad Road

Blue collar workers constitute at least 80 per cent of the working population in these areas. It is a young workforce with modest salaries.

P.B. Krishna Prasad,

Vasavi Housing

Sriperumbudur is definitely on the way up. But we still have to cater significantly to a highly budget-conscious market.

The 18-km stretch from the IT corridor in Kelambakkam to the Grand Southern Trunk (GST) road junction at Vandalur was lying low for quite some time due to the hectic real estate development activity on either side of the corridor. With the soaring land prices and acute scarcity of land for housing development, the perpendicular road that connects both the corridors is bristling with activity, thanks to the improved connectivity levels and willingness on the part of Chennaiites to shift from city areas.

There is another reason for the sudden shift in trend. With the availability of large land parcels, property developers could plan large projects with a comprehensive range of amenities that will convince the people that it is time to live in a gated community development for varied reasons.

Over 15 developers have ongoing residential projects on either side of the Vandalur-Kelambakkam road. These range from affordable housing, plotted development, luxury apartments to villas. Among the developers who have ongoing projects, specific mention must be made about Puravankara Projects, Sobha Developers, Unitech, Real Value Promoters, Vijayshanthi Builders, Artha, Isha Homes, SSPDL, Emaar MGF, DABC, Provident Housing Development, among others. A number of affordable housing projects are likely to change the skyline of the area in the coming years, according to industry sources. Apartment prices for ongoing projects range from Rs 2,500 to 3,900 per sq ft whereas row houses are quoted at Rs 3,500 per sq ft. Developed plots in areas like Vengambakkam are quoted at Rs 1,000 per sq ft.

The presence of Chettinad Hospital, VIT University and engineering colleges have pushed the demand for housing and nudged others to shift to suburbs. A few schools are due to come up in the corridor. As the GST corridor is bustling with activity due to lack of infrastructure and soaring land prices, Vandalur-Kelambakkam road came in handy for developers to look at housing development due to availability of large land parcels and willingness on the part of land owners to opt for joint venture development. This has enabled a number of property developers to make a beeline in search of suitable land parcels for development. As the connectivity levels have improved and housing prices are competitive, those working in the IT corridor would be keen to invest in the coming years as prices are yet to touch the IT corridor level.

Though social infrastructure is lacking, Vandalur junction is poised for a major turnaround in development. Aerens Gold Souk is under construction near Vandalur on GST road. With improved connectivity levels to Oragadam via Tambaram-Mudichur road the area offers good transport connectivity for blue-collared workers to invest in housing as social infrastructure is gradually improving in the vicinity. The road widening work on GST road is long overdue and will go a long way in improving housing development in and around the area.

Among the prominent realty sections of the city, the massive stretch of GST Road, from Guindy, through Tambaram and Maraimalai Nagar, Singaperumal Koil is seeing large-scale development. Better infrastructure in terms of transport and improved connectivity, road, rail and the Monorail proposal from Velachery to Perungalathur has ensured that these areas have seen a lot of residential activity.

Nearly 15 townships with a focus on residential zones are coming up on GST road. The erstwhile agricultural lands are fast yielding space to the booming construction industry, and very soon, these areas may transform into concrete jungles, with several real estate companies setting up projects here.. Lancor Holdings, Malles, Mahindra Lifespaces, Pan 360, etc, are just some of the more popular ventures that have already come up here. Connecting roads have been laid in a few townships, while huge water tanks and spending arches have been constructed to attract investors.
“The same scenario may soon extend up to Chenglepet which is less than 25 kilometres from our current project at Kattankulathur. Properties on GST road are more affordable than the ones on OMR and this, in turn, attracts people to invest here. Improved road connectivity from GST to the rest of the city is one of the main reasons for this development. The four-lane highway road is a hassle-free drive till Chenglepet and Singaperumal Koil and to the Meenambakkam Airport on the other side. Besides, the Monorail connectivity project from Velachery to Perunagalathur in the near future followed by road connectivity to Maduravoyal has also contributed to the development of the stretch,” says R V Shekar, Managing Director of Lancor Holdings.
The upcoming suburbs along GST Road – localities like Perungalathur and Paranur – are among the areas on this stretch that have recorded maximum real estate activity in recent times. All these suburbs have their own advantages, making life easier and convenient. Initially, these localities were nothing more than small towns with minimal facilities in terms of infrastructure and recreation. However, now these suburbs are have grown to become residential localities with support infrastructure and good connectivity, coupled with quality education institutions and medical facilities.
Both commercial and residential properties along the corridor will find more takers competing for spaces located strategically. Any property located within walking distance of a station is a premium property. The stretch has played host to some quality hotels and entertainment zones and the monorail is sure to boost this segment as well, thanks to the fact that parking issues may be partly resolved due to better connectivity through public transport, the monorail, that is.
“There will definitely be a hike in property prices with this development in connectivity. Many people who were holding back plans to sell their properties are selling them now. There are many enquiries for spaces (that had been vacant while the construction was going on) from my friends and colleagues,” says J Rajeshkumar, a resident of Paranur working at Mahindra Renault. Rentals of commercial properties too are slated to go up along the corridor.
“Everyone wants to be on OMR, and now with the monorail plan which is expected to be completed by the end of 2013, rentals will go up too,” says S Ananthakrishnan, former President, Bangalore Trades Association.
The special economic zone (SEZ) in Paranur and Maraimalai Nagar also offers plenty of options for people looking to invest or stay. “Going by the hectic construction activity here, land prices have escalated in the locality. For middle-class families, it is an ideal place to invest. Land prices could increase further following the move to introduce monorail services up to Perungalathur,” explains Sundararajan, CEO of Pan 360. Some developers have also started purchasing lands in Guduvanchery.
The monorail and other such connectivity projects in the suburbs are sure to promote more real esatte activity in the coming years in these areas.
Source- TOI

In contrast to what was been witnessed in many of the more volatile cities over the last couple of years, Chennai’s residential property market saw steady growth in terms of pricing, demand and supply.

In contrast to what was been witnessed in many of the more volatile cities over the last couple of years, Chennai’s residential property market saw steady growth in terms of pricing, demand and supply. Chennai’s residential property market is predominantly end user driven, and this fact did a lot to sustain consistent absorption throughout 2011. The absence of overt speculation has also ensured that developer has move pricing of homes in a stable and gradual manner. Unnatural spiking has therefore been successfully kept at bay.

We expect interest rates to decrease over the course of 2012, and this will result in greater demand for homes in Chennai in 2012.

Increased job security in the city has definitely helped the market to maintain buoyancy and a positive outlook. Over the last 12 months, it became increasingly evident that Chennai’s residential real estate market is significantly dependent on the IT/ITES sector. With employment stability in this sector looking a lot better now than it did in 2010, demand for homes has now reached a comfortable and dependable growth trajectory from which developers are taking their market cues.

CONFIGURATIONS IN DEMAND

The preferred size for 3BHK flats in Chennai has increased from 1200-1300 square feet during the recession to 1400-1500 square feet in the revival phase. The preference for 2BHK sizes has also increased from 850-950 square feet to about 1100-1200 square feet. Again, the main reason for this upgrade in preferences is increased budgets made possible by improvement in the performance of the IT / ITES sector. This is a welcome trend which is enabling architects, planners and developers to come up with better quality dwelling units. Affordable housing units continue to rule the roost in areas where social infrastructure lags and capital values are therefore lower.

We expect overall demand for residential properties in Chennai to increase once the interest rates stabilizes from their current peak. There is a very healthy demand in both the primary and secondary markets, since supply is scarce in both owing to the severe lack of land within the city. Land pricing has, in fact, surpassed the buying capacity of developers and this has put pressure on their ability to come up with viable residential products. Lack of supply and exorbitant pricing are causing both the end users and investor segments to take a closer look at suburbs with decent infrastructure.

Suburban Demand Drivers:

Positive market sentiments

Possible softening of interest rates

Increased job security

Unaffordable property rates in the central city

Year 2011 saw residential property pricing in Chennai moving up in a phased and rational manner, which helped in sustaining the momentum. Prices rose by between 8-30% in different areas, but these rises took place in small compartments and in proportion to the actual sales in particular locations and projects. We expect a similar trend to prevail in the year 2012.

Expected Price Movement For 2012:

OMR – 15-30%

GST – 10-15%

City – 20%

NH-4 – 5-8%

AREAS TO WATCH

Madhya Kailash – Sholinagnallur

This stretch is witnessing a clear supply-demand mismatch, with demand outstripping supply. With new employment being generated in this corridor and corresponding absorption of IT space, this area and its peripheries are witnessing extremely healthy demand for residential property. Its proximity to the city adds to the appeal of this area, which will see good appreciation over the coming years. Encouragingly (and in contrast to other parts of OMR) all completed projects here are fully occupied.

Velachery

Velachery is seeing consistent growth, because it is one of the few areas which are seeing holistic and self-sustaining development. With malls and other social infrastructure improving, Velachery is definitely next in line for good appreciation. In fact, near-lying areas such as Medavakkam, Pallikarnai, Pallavaram,Thoriapakkam, the 200 FT. MMRD Road and Rajakilpakkam are already experiencing the positive fallout effect of Velachery’s growth as a residential property destination. These areas are also witnessing good absorption and capital appreciation. There is also significant demand for homes in Porur along the NH4 corridor up to Urapakkam on the GST Road.

Chennai is one of the most fast growing cities in the southern part of India. This metropolitan city is plotted with hot spots, attracting the crowd of property buyers and sellers. This article hopes to provide fruitful information to all such property enthusiasts.

Adyar:

Adyar is the most popular of the South Chennai neighborhoods. Flanked by the other famous localities of Chennai like Thiruvanmiyur, Besant Nagar, Guindy, Taramani and Kotturpuram, Adyar is also the poshest of the posh localities in Chennai. A part of the IT corridor, Adyar also has a good number of Multi-cuisine restaurants, shopping and lifestyle hubs strewn all over. Adyar is essentially a twin delight- a good mix of the thriving IT community and a supremely calm atmosphere. Investments in Adyar area is a great opportunity to complete that happiness bubble. Real Estate prices and new properties are costliest at Adyar but the golden egg is always worth the money.

ECR is Chennai’s backyard Venice. Loved by locals and expats alike, this super scenic highway traversing along the eastern coast connects Chennai to Cuddalore via the Union Territory Pondicherry. ECR houses Luxury apartments, Posh Bungalows, entertainment hubs and resorts all the way from Thiruvanmiyur-Pondicherry. ECR has become an extended neighborhood of the city and is very easily accessible from the IT hub that is the OMR. The promise of class coupled with luxury, the proximity to OMR and the prospect of living near the beach makes ECR the best place to invest and buy new property in Chennai.

Sriperumbudur:

Located just 40 Kms off Chennai, Sriperumbudur is a Special Economic Zone famous for its multitude of highbrow industries and manufacturing companies. Starting 2000, Sriperumpudur has witnessed rapid industrialization to become one of the biggest business hot- spots in the country. Particularly known for its wireless handset and automobile manufacturers, this once quaint little town garnered global attention when the preliminary signs of industrialization began with Nokia in 2006. Since then, many bigbrands have their major units propped at Sriperumbudur. With a workforce of over 30,000 and a world class public transport infrastructure , its only obvious that real estate is a big business in Sriperumbudur. New property requirements are on an all time high and more realtors are pouring in to Sriperumbudur to satisfy the balance in the demand-supply curve.

GST:

The Grand Southern Trunk Road, also known as the GST road is the arterial highway that connects Chennai to the Southern Parts of TamilNadu. The road starts at Kathipara Junction in Guindy, a very busy confluence of five roads, connecting Chennai to its airport and Southern suburbs. GST is not only an industrial high-spot but also a residential hub. The road is infested with sophisticated apartments, gated communities, popular colleges, et al making it the hottest of hot-spots to invest on and buy new properties. Investments along the GST road are also super safe since the real estate value in this area is only appreciating.

OMR:

Think IT in Chennai and it is hard to not discuss OMR.

OMR is not just the face of the now booming IT industry in Chennai but is also a beehive for real-estate development. IT projects have been dotting the OMR belt between Madhya Kailash and Mahabalipuram starting 2002 and ever since the TN government increased the floor space index to 3.75, roughly 1.5 times the prevailing value, there has been a phenomenal rise in the requirement for new property in this region. The prospect of excellent value for money, new property offerings from famous builders and proximity to work has convinced people to settle down in OMR which also plays host to a multitude of tech parks, shopping malls and lifestyle amenities.

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